MGT3663 ASSIGNMENT JAN 2021

BANKING OPERATION AND PRACTICES

(MGT3663)

COMPARISON ON BANKING OPERATION BETWEEN ISLAMIC BANK AND
CONVENTIONAL BANK

PREPARED BY: NO.ID
NAME BMF19-06-081
MOHAMAD AIMAN AFIF BIN HAMDAN BMF19-06-117
NUR AISHA ZAHRAA BINTI ALIAS BMF19-06-109
NUR ALYA BINTI MOHD NAZARUDIN SHAM BMF19-06-050
MUHAMMAD AIDIL REZA BIN ABDULLAH

DATE OF SUBMISSION: 26 APRIL 2021

PREPARED FOR:
PN.AISYAH BINTI OTHMAN
KOLEJ PROFESSIONAL MARA BANDAR MELAKA

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Acknowledgment
In the name of Allah the most gracious and the most merciful. First and foremost we would like
to extend our deepest praise to Allah S. W. T who has given us the patient, strength,
determination and courage to implement this task.
To begin with, utmost thanks and gratitude goes to the lecturer, Pn Aisyah binti Othman for
imparting us with her wealth of knowledge, valuable guidance and experience. Our appreciation
and thanks is also dedicated to all of the group members for their helpful insights, cooperation
and ideas to finish this task.
We also would like to express our apology for any mistake and shortcoming in carrying out this
task. To end with, we are truly delighted, for this research would bring benefits to others.

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MUDHARABAH DEPOSIT

Definition of Mudharabah

 Although there are numerous products provided by Islamic commercial banks which
are similar to conventional banks, both organizations vary in definition. One
important distinction is that conventional banks benefit by charging interest rates
and services fees, while Muslim banks gain their money by sharing gains and losses,
selling, lending, charging services and using other Sharia exchange contracts. Thus,
Islamic banks can sell different types of products, unlike conventional banks. One
commodity is the "MudharabahMuqayyadah" Restricted Investment Account. A
Mudharabah is the Investment Relationship, under which the investor (Sahibul Mal),
to conduct business/investment activities, gives equity to another party/entrepreneur
(Mudarib). While the benefit is shared at a pre-accepted ratio, only the investor
generates any loss of investment. The mudarib is liable for the damages, even if the
mudarib has been responsible for neglect or wrongdoing in its administration.
Misconduct would include fraud or other unlawful activity, as well as voluntary
investment of funds in violation of Sharia prohibitions or in violation of the
investment mandate provided for in the subsequent contract. Negligence would
involve a major diligence failure, leading to losses

Why is it allowed to use Mudharabah?
• When Islam came, mudharabah was accepted. Since mudharabah satisfies various kinds
of people's needs. Some people have money, on the one hand, but they do not have
entrepreneurship and leadership skills. In the other hand, there are people with business
management and entrepreneurship experience, but they have no resources to do so.
The mudharabah contract allows all parties to enter into a relationship and to benefit
from the contract. The capital provider relies on the management's know-how and skills.
The manager also takes advantage of resources by investing in profitable business and
gaining income.

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Characteristics of Mudharabah:
• The profit shall be shared between two parties in accordance with their terms of
agreement.
• The capital supplier who is the financial supplier alone shall bear the losses.
• Just frustrations of fruitless effort suffer to the entrepreneur.

Flows of Mudharabah:

Types of Mudharabah
• From the perspective of work limits, the mudharabah contract can be divided into two
categories: MudharabahMutlaqah (unrestricted) and MudharabahMuqayyadah
(restricted).

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Mudharabah Mutlaqah (Unrestricted Mudharabah)
• It is a type of a mudharabah contract that is not restricted by the provider of capital and
gives him complete freedom with respect to the administration of capital. In this case
the manger has no company style or venue restrictions, etc. He has the luxury to spend
and do what he wants based on his know-how and experience. This means that he is
permitted to do so in the usual business cycle. But if he intends to do unusual activities,
not in the ordinary traders' routine, he must receive prior approval from the provider of
resources.

MudharabahMuqayyadah (Restricted Mudharabah)

• It is a form of mudharabah where the supplier of capital limits the manager to a specific
business type or to a specific venue. In this case, the manager must function within the
given limits or spend money. The supplier of the capital is entitled to impose any
necessary conditions, as long as the manager is not constrained from his fundamental
businesses.

The transaction Mudharabah Muqayyadah may be offered by an Islamic bank to gather or
channel an investor who is ready to invest his or her funds with an entrepreneur who needs the
money to finance his/her company. The bank is the fund manager, investor or agent. The Bank
charges a service fee, as negotiated by the parties, as a fund manager/investment
manager/agent. Mudharabah Muqayydah is two types:

1. The Mudharabah Muqayyadah is the Islamic Bank's channelling agent, and

2. The Islamic Bank's Mudharabah Muqayyadah is the executing agent.

The Mudharabah Muqayyadah (the "off-balance sheet") where the bank serves as the
channeling agent and the bank does not have the right to share income. The bank's balance
sheet is not booked on the bank. The bank, on its part, will be entitled to a share of income and
a fee for services in a Mudharabah Muqayyadah, where the bank acts as the executing agent;
and the account shall be reserved on the bank's balance sheet ('on-balance sheet').

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A multi-system Mudharabah Muqayyadah can be implemented: 1) one to one; 2) one to many;
3) many to one; 4) many to many; which mean, respectively:

1. One investor for financing an undertaking to one specific business activity;
2. One investor for financing more than one undertaking for several specific business

activities;
3. More than one investor for financing an entrepreneur in an individual business activity;
4. More than one investor for financing several undertakings.

Mudharabah Muqayyadah's product can improve the bank financial to deposit ratio and
minimize the discrepancy between finance activities and finance. The Mudhabarah Muqayyadah
also enables investors to decide whether to fund the entrepreneur and type of company.
Mudharabah Muqayyadah ensures transparency in the performance of the investment/financing
asset where management and supervision activities are managed by the bank. However, until
investment / funding matures, the investor cannot withdraw its assets.
There are two basic categories of Islamic financing:

1. Debt-based contracts/ debt-based instruments. (give a fixed return)
2. Profit and loss sharing contracts. (give a non-fixed return)
The investor should recognize the non-fixed return basis transaction under the Mudharabah
agreement. The investor will not expect the same monthly return as it depends on the benefit
or revenues generated from the business operation.

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WAKALAH INVESTMENT

Definition of Wakalah

• Wakalah literally means, on behalf of others, defense or solution. Legally Wakalah refers
to a contract in which an individual authorizes someone else to take legal action on his
behalf in some well-known ways. It is an organization arrangement that means some
job or operation on behalf of others. An agent is someone who maintains contractual
and commercial relationships with a third parties, normally for a fixed fee. The principal
shall consider any conduct by an agent on behalf of the principal as action. The agency
must perform such work tasks that the head of the agency has little time, no experience
or no expertise to perform. The need occurs if an individual is not capable or competent
to carry out a certain activity by distance or size, for instance. Operation, representation
and power to work for the principal are key features of the organization. An agent may
earn a particular salary for services rendered under the principal's compensation system.

• The real profit is allocated in Wakalah agreements in accordance with the early
negotiated profit ratio. By investing in a selected device at an accepted wakil rate, Bank
(Wakil) can specify the expected return of its deposit by customers. Investment is then
made by Wakil to produce a return for and on behalf of customers (Muwakkil). The
Muwakkil provides the estimated returns from the investment and after deducting the
wakil charge, Wakil shall be required to invest to achieve the anticipated return. The
Wakil will keep any income that reach the negotiated returns as additional incentive. As
any other investment, the Muwakkil is liable for all risks and losses in the event of
default, except for the risks and losses caused by fraud and negligence of the Wakil.

In any of the following cases, a Wakalah contract is binding:

1. The Wakalah agreement includes third party privileges.
2. The contract for Wakalah includes a fee payable to an agent.
3. The agent started working and the discontinuance of the job would lead to losses to the

principal or to the agent.
4. The agent and the principal decided not within the given period to cancel the Wakalah

deal.

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The Wakalah agreement may be as follows:
1. Unrestricted agency (wakalah mutlaqah): a contract of agency under which the principal
appoints an agent without clear restraints or requirement to do a certain duty.
2. Restricted agency (wakalah muqayyadah): a contract with an agent under which the
principal designates someone with a particular limitation or disability to conduct the task
in question.

Components of Wakalah Contract
The following elements must be included in a wakalah contract:

 The principal and agent (collectively referred to as contracting parties).
 The (ijab) and the (qabul) offer to conclude a deal with the wakalah.
 The subject matter of the wakalah contract.

Salient features of Wakalah:
1. Disclosure of the agent‟s authorization. If the agent enters into a contract with a third
party and reveals that it acts in the name of its principal –

a) The principal shall assume the rights and obligations arising from the transaction.
b) The principal shall be binding upon any intended result of a transaction entered into

by the agent in accordance with the authorization.

2. Dual agency.

a) Where more than one principal (or not one transaction such as the seller and
purchaser or lessor and the lessor) is included in an agreement as contracting
parties, an agent can act on behalf of all principal. The agent may do so for each
individual.

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b) An individual may enter into a subsequent transaction with itself as the other
contracting party as an agent of one principal (such as the purchaser under a
tawarruq deposit or the seller under tawarruq financing).

3. Rights and Obligations of agent.
a) In WakalahMutlaqah, the agent must observe the general interest of the principal
where the particular situation has not been decided on the issue.
b) The Agent is responsible or compensated for loss or harm, including any real costs
incurred by the principal, in case of wrongdoing, neglect or violation of any specific
term of the Agent. The Agent is liable.
c) In the case of a violation of specified terms, the agent will communicate this to the
principal and does not maintain part of its profits without the permission of the
principal, such as the sale at a higher price or the purchases at a lower price than
was authorised by the agent.

APPLICATION OF WAKALAH WITH OTHER CONTRACTS
The contract of Wakalah can be extended in addition to the following contracts or
arrangements:

 Exchange-based contracts such as murabahah, istisna`, and ijarah.
 Partnership agreements like musyarakah and mudarabah.
 Murabahah to purchase orderer.
 Ijarahmuntahiabittamlik.
 Tawarruq.

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Wakalah Deposit Structure:

Shariah Issues on Wakalah Deposit Structure
The process basically met all the requirements agreed by the scholars and ensured that
transactions were fair and consistent with Shari'ah. Some problems need to be emphasized in
this deal, however. The wakalah agreement was criticized for conflict of interest and may lead
to charges against an agent. There is a question where the agents are acting against their
principals' interests. This issue is usually called an organization issue when the goals for the
owner do not match the goals of their agents. In addition, under wakalah contract no physical
commodity is needed. This raises the question whether wakalah is an effective risk and control
governance system.

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MUSYARAKAH
Definition of Musyarakah

• Musyarakah is a joint enterprise or partnership structure in Islamic finance in which
partners share in the profits and losses of an enterprise. Since Islamic law (Shariah)
does not permit profiting from interest in lending, Musyarakah allows for the financier of
a project or company to achieve a return in the form of a portion of the actual profits
according to a predetermined ratio. However, unlike a traditional creditor, the financier
also will share in any losses should they occur, also on a pro rata basis. Musyarakah is a
type of Shirkah al-amwal (or partnership), which in Arabic means "sharing."

Types of Musyarakah

• Within Musyarakah, there are differing partnership arrangements. In a Shirkah al-
„inanpartnership, the partners are simply the agent and do not serve as guarantors of
other partners. MusharakahInan is a limited liability entity in the sense that the partners
are only liable to the extent of capital they have invested, the partners in
MusharakahMufawadah are held liable beyond the entity‟s capital. Shirkah al-
mufawadah is an equal, unlimited, and unrestricted partnership in which all partners put
in the same sum, share the same profit, and have the same rights.

Salient Features of the Musharakah

• The profit-sharing arrangement is contemplated on the basis of future projections of
profits which in turn is based on past averages duly adjusted according to the future

plans and projections and overall state of the economy, the duty and tax structure to

which the business is subject to and the industry in which the firm operates. How far

such projections and, in turn, share of profits or losses are realistically determined has

more to do with the integrity of the entities, the general state of accounting, the degree

of credibility and a realistic assessment of other surrounding factors.

• A provision usually contained in various musharakah agreements is that a certain

weightage is assigned to the total amount invested by the bank while the equity of

business entity is based on actual levels. This feature which enables banks to claim

higher percentage of profits compared with the actual investment seems to be

questionable because if at all any weightage appears desirable it is in respect of the

undertaking‟s own investment because besides capital, it is contributing business

management and expertise.

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• The funds being basically provided for working capital needs of the business are in the
form of a chequing account somewhat akin to cash credit or overdraft account in which
operation could be carried out by depositing funds and withdrawing the same.

• The investment of die bank is construed to be the totals of daily products of the account
participating in profit arrangement. Correspondingly, the investment of business entity
for the limited purpose of profit- sharing arrangement under musharakah agreement is
also to be determined on the basis of the totals of the daily products of paid-up share
capital, revenue reserves and undistributed profits. Funds within die use of business
entity obtained from any other source which is not liable to any interest shall also be
part of the company‟s investment. Likewise, in order to determine “net equity” of the
company, accumulated losses shall be deducted.

• While in theory, it is envisaged that the directors of the company and management shall
have absolute independence in managing and conducting the affairs of the company, in
practice, however, it seems that certain major decisions such as disposition of profits,
change in the existing line of business, etc. may be subject to bank‟s consent. In any
event, however, it seems imperative that banks shall employ some mechanics for
monitoring the affairs of the company.

Musyarakah Modus Operandi

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Understanding Musyarakah
•Musharakah plays a vital role in financing business operations based on Islamic principles.
For example, suppose that individual A wants to start a business but has limited funds.
Individual B has excess funds and wishes to be the financier in musharakah with A. The
two people would come to an agreement to the terms and begin a business in which
both share a portion of the profits and losses. This negates the need for A to receive a
loan from B. Musharakah is frequently used in the purchase of property and real estate,
in providing credit, for investment projects, and to finance large purchases. In real
estate deals, the partners request from a bank an assessment of the property's value via
imputed rent (the sum a partner might pay to live in the property in question). Profits
are divided between partners in predetermined ratios based on the value that was
assigned and the sum of their different stakes. Every party that puts up capital is
entitled to a say in the property's management. When musharakah is employed to
finance large purchases, banks tend to lend by using floating-rate interest loans pegged
to a company's rate of return. That peg serves as a lending partner's profit.

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Comparison between Islamic Financing and Conventional Financing

Islamic (Bank Rakyat) Conventional (Hong Leong)

The Bank can use these funds for investment The Bank can use these funds for investment
and other purposes. It allows satisfaction of and other purposes regardless Shariah
having the money safely deposited with a prohibition.
bank with the additional assurance that the
Bank is not investing it in activities that
contravene Shariah principles.

Free of cost services are offered to all Free of cost services are offered to customer
customers across the board means all free which tantamount to interest.
services are offered to current as well as
saving accountholders.

Islamic Saving Account is an “investment for No specific underlying mode is used in Saving
profit” account governed under the rules of Account.
Mudarabah with an objective to provide
return on the investment.

Sharing profits in case of Mudarabah and Debts financing gets the advantage of
sharing in the organization of business leverage for an enterprise, due to interest
venture in case of Musharakah, provides expense as deductible items form taxable
extra tax to federal Government. This leads to profit
minimize the tax burden over salaried
persons.

In Islamic banking, profit are distributed out In conventional banking, fixed rate of interest
of profit earning by bank for the month as being given to depositors.
per decided weightages.

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USES OF FUNDS:
CONVENTIONAL BANK (HONG LEONG)

Hong Leong Bank Berhad is a Malaysia-based regional financial services firm with offices in
Singapore, Hong Kong, Vietnam, Cambodia, and China. The Bank emphasises the growth of
financial capabilities to support its clients across five geographies and is technology-focused.
Hong Leong Bank Berhad (“HLB” or “the Bank”) is a member of the Hong Leong Group and is
listed on Bursa Malaysia. Hong Leong Bank provided products to an individual who have
shortage of financing which are personal loan, home loan, MortagePlus, shop loan, special
housing loan, auto loan and others that are listed by Hong Leong Bank Berhad.

Similar to ar-Rahn system, personal loan by Hong Leong Bank provided 20% cash back on
interest following by fast approval within 48 hours. The minimum income eligibility only RM24,
000 per year and the financing is up to RM250,000 based on the maturity date. The personal
loan can be used for investment spending. It can be used by arranging and handling debt and
equity fund raising, private debt securities ("PDS") issuances, syndicated loans, initial public
offerings ("IPOs"), rights issues, limited issues, special issues, and private placements are
among the Investment Banking Division's key operations. Corporate restructuring, mergers and
acquisitions, asset and investment analysis, takeovers and privatisations, and capital market
instruments are some of the other corporate advisory services that we provide. At the same
time, the Bank provides debt and equity underwriting, deposit taking, treasury-related solutions,
trading, and distribution services.

HLE BROKING, the Stockbroking Division, offers a variety of broking services to a wide range of
customers, from institutional to high net worth and retail investors.HLE Broking aims to offer
innovative insights and fresh perspectives on investment ideas with the help of a dedicated
clientcentric sales team committed to timely guidance and good trade execution, as well as a
research team led by a rated analyst and other industry specialists.Furthermore, the
Stockbroking division invests in the creation of its electronic online trading platform in order to
provide a better customer experience and efficient trading pricing.

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Interest/Profit Rate for Online Applications
The interest rate is following on a flat rate basis:

Facility Approved Flat Facility Tenure
Amount Facility Interest/Profit
Amount Rate

RM5,000 – 7.00% p.a.
RM49,000

RM5,000 – – 6.00% p.a. 2 to 5 years
RM250,000 RM50,000
(up to RM99,000
RM150,000
Personal
Financing-i)

RM100,000 and 5.00% p.a.
above

Interest/Profit Rate for Connect Online Banking Applications The
interest rate is following on a flat rate basis:

Facility Amount Approved Flat Facility
Facility Interest/Profit Tenure
Amount Rate

RM5,000 –
RM250,000
RM5,000 and 5.00% p.a.
above 2 to 5 years

(up to RM150,000
Personal Financing-i)

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ISLAMIC BANK (BANK RAKYAT)

Rahn implies pledged or collateral within the literal sense. It is a course of action in which a
important thing is swore as security by the client in trade for an interest-free credit from a bank.
The bank will win cash by charging a expense for the administrations given on the profitable
thing promised by the client. On the off chance that a client owes cash to a leaser and is
incapable to reimburse the advance, the thing is pawned will be sold to settle the extraordinary
obligation and any overflow will be returned to the proprietor.

On 21 August 1993, the Ministry of Finance announced the establishment of an Islamic pawn
broking scheme named Skim al-rahnu (SAR) through the collaboration of three institutions,
namely Bank Negara Malaysia, the Yayasan Pembangunan Ekonomi Islam Malaysia (YaPEIM)
and Bank Rakyat. The usage of Ar-Rahnu in different Islamic financial institutions has made a
difference involves a few aspects. Among them are differences in operation and implementation
strategies between institutions essentially include advance rates, investment funds
compensation, budgetary assets and goals establishment. Ar-Rahnu Bank Rakyat offers a wide
extend of items to enhance profit era. As a solid institution, issues such as capital capacity,
manpower and security ensures are not a imperative for them to providing Ar-Rahnu
administrations on a bigger scale at each department of the Bank Rakyat.

Bank Rakyat, on the other hand, has been selected as one of the collaboration organisations.
The bank provides a number of pawnbroking services, each with its own range of advantages.
The various types of pawnbroking are Pawn Broking-I Ar-Rahnu, Pawn Broking-I Az-Zahab, Ar-
Rahnu Prepaid and Az-Zahab Prepaid, Az-Zahab Installment, and Pawn Broking-I ArRahnu
Genius.

ArRahnu is a comparatively recent microcredit instrument in Malaysia. It is open to both
residents and visitors, Muslims and non-Muslims alike. Loan terms vary from one to six months.
Borrowers can choose between paying in one lump sum or in monthly instalments. If the
creditor is unable to repay the loan, extensions of up to three months can be issued. If the
creditors are now unable to repay the debt, the pawned asset will be auctioned off, with the
excess being returned to the seller less the remaining balance and costs. There are no riba or
gharar elements in ArRahnu. Borrowers are only required to pay the principal amount plus a
safekeeping fee.Other than that, there are benefits for those utilizing this administrations which
are intrigued free, no handling charge, safekeeping on every day rate and beneath takaful
scope. So, what is their qualification? Their qualification is Pawn Broking ArRahnu are

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substantial for age over 18 a long time ancient and not announced as bankgrupt. Bank Rakyat
in fact given the finest operation and administrations since they as it were request MyKad/
MyPR for documentation. Also, Bank Rakyat Pawn Broking-iAr-Rahn has its own speciality that it
is has a long mortgage term, and conducts transactions in front of customers in a special space.
Besides that,Bank Rakyat has conditions for pawn goods which is the goods must be both
jewellery and gold, with the exception of pawned holy statues and living animals. Ingots,
wafers, tokens, or gold nuggets as long as they have a Purchase Receipt or Certificate of
Authenticity. The employer gives gold objects to workers in exchange for the following: the
employee submits a Certificate of Appreciation document Gold standard between 22 to 24
carats Weight does not surpass 300 grams.

Proceed to the next section, which focuses on Pawn Broking features to distinguish between
various forms of Pawn Broking in Bank Rakyat. The first form is Pawn Broking-iAr-Rahn, which
is based on the shariah principle of Qard, Wadiah, YadDhamanah, and Ujrah, and has a profit
margin of up to 70% Advance constraint Least RM100 per day RM10,000 aggregate RM50,000
Period Least 6 months (18 months most extreme).Apart from that, the second form is Pawn
Broking-I Az -Zahab, which uses the same shariah definition and has other features such as a
loan cap of RM 10,000 per day/RM 100,000 cumulatively. It has a validity period of 6 months
(18 months maximum) and 36 months, as well as a 70 percent margin.The third form is Ar-
Rahnu Prepaid, which has a minimum loan limit of RM 1,000, a daily limit of RM 10,000, and an
accumulative limit of RM 50,000, while Az-Zahab Prepaid has a minimum loan limit of RM
10,001 per day and an accumulative limit of RM 100,000. The storage period is 6 months (18
months maximum) and the bank charges a single storage feeMoving on to the fourth form of
pawnbroking, Az-Zahab Installment. For Az-Zahab Installment, the loan cap is a minimum of
RM10, 000 per day/ a total of RM 100,000, and the repayment term is 6 months (18 months
maximum). Payment by instalment is accepted for 36 months. The bank also charges a regular
storage fee, but no transaction fee, and the shariah dependent is the same as the other forms.
Last but not least, the fifth form of pawnbroking is Pawn Broking-I Ar-Rahnu Genius, which has
a loan cap of RM 3000 per day with a total of RM50, 000 and a repayment period of 36 months.
To summarise, all types of pawn broking offered by Bank Rakyat have the same shariah-based
margin value, same privileges, same eligibility, and the same documents that the bank requires.

Bank Rakyat also provide Ar-RahnuX‟Change its an establishment which offers Islamic pawn
broking services (Ar-Rahnu) beneath Bank Rakyat. To begin with propelled in 7 December 2006,

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nowadays it has 114 outlets across the nation. Ar-RahnuX‟Change (ARX Change) offers speedy
cash small scale credit office collateralized by gold or gold jewellery for up to RM650, 000
through either the Ar-Rahnu, Az-Zahab or Az-Zahab Premium schemes. Aside from financing
offices, ArRahnuX‟Change moreover offers ARX Storage, an adornments capacity benefit with
greatest protections security, as well as gems cleaning services. Ar-RahnuX‟Change works based
on Bank Rakyat‟s encounter and mastery in Ar-Rahnu trade since 1993. Through the
establishment framework, Bank Rakyat offers cooperatives the capacity and rights as a
franchisee to oversee commerce operations of its Ar-Rahnu business. Rakyat Management
Services SdnBhd, a backup of Bank Rakyat, holds the rights and duties as franchisor of the Ar-
RahnuX‟Change establishment and manages all trade operations. Also, Bank Rakyat use the
fund by Provide working capital for Cooperatives under Ar-RahnuX‟Change Franchise Program to
fund Ar–Rahnu financing activities to the Customers. By doing that, Bank Rakyat can strengthen
and expand the existing franchisee business and to create awareness and interest from other
Cooperatives and also it could improve efficiency of Ar–Rahnu Franchisee operation.

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COMPARISON BETWEEN AR-RAHN AND CONVENTIONAL PAWNING

AR-RAHN PRINCIPLES CONVENTIONAL PAWNING

Bank Rakyat OPERATOR Individual based

 Daily safekeeping charges CHARGES  Interest is charged
 No interest charges  More expensive rate

 Only pure gold accepted ITEMS Any valuable items

 ornamented gemstones Not required to provide
on gold items will not be valued Proof of ownership

 Must provide proof of OWNERSHIP
ownership either through the letter

of purchase / receipt or letter of

undertaking

 Have Certificate of
Authenticity

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REFERENCES

Blossom Finance. (2020, April 20). Retrieved April 24, 2021, from Introduction to Mudarabah:

https://blossomfinance.com/about-us

Ramadan, M. (2020, June n.d.). Research Gate. Retrieved April 24, 2021, from Islamic vs.

Conventional Corporate Finance: A Comparison:

https://www.researchgate.net/publication/344466487_Islamic_vs_Conventional_Corporat

e_Finance_A_Comparison

Sani Kabiru Saidu, A. S. (2018, October 24). Intech Open. Retrieved April 23, 2021, from

Financial Instruments: Islamic Versus Conventional:

https://www.intechopen.com/books/accounting-from-a-cross-cultural-

perspective/financial-instruments-islamic-versus-conventional

Street, L. (2019, November 19). Loan Street. Retrieved April 23, 2021, from Ar Rahnu – Islamic

Pawnbroking in Malaysia: https://loanstreet.com.my/learning-centre/ar-rahnu-islamic-

pawn-broking-in-malaysia

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APPENDIX
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